BMA’s ‘happy marriage’ with EIOPA highlights Bermuda’s global regulatory standing
Speaking at the ABIR Risk Forum 2026, which took place in Bermuda this week, senior industry and regulatory figures used the session “Compliance & Cooperation: Ten Years of Solvency II and Solvency II Equivalence” to underline the value of cross-border regulatory recognition and Bermuda’s place within it.
The session was moderated by Shannon Bender (pictured right), group general counsel, RenaissanceRe, and featured Petra Hielkema (pictured left), chair, EIOPA, and Craig Swan (pictured middle), CEO, BMA. While both speakers highlighted the strength of the relationship between Europe and Bermuda, Swan’s comments offered the clearest view of how the Bermuda Monetary Authority sees equivalence as both a supervisory discipline and a strategic asset.
Swan linked the broader meaning of equivalence directly to Bermuda’s role in the global reinsurance system. He said the island’s market had long been built on coming to the assistance of other countries through “crisis, resilience, ingenuity”, and argued that its reinsurance industry continues that legacy today by responding when catastrophes strike, from hurricanes and floods to wildfires, convective storms and earthquakes.
For Swan, the importance of Solvency II equivalence sits squarely within the BMA’s wider mission of supporting the delivery of financial services products, including insurance, and helping to close protection gaps. Mechanisms such as equivalence, he said, foster cross-border reinsurance and help ensure insurance products reach policyholders who need them.
He also emphasised that equivalence is not simply a matter of legislation on paper, but of outcomes and implementation. Both the EIOPA and NAIC (the US regulatory regime) processes, he noted, are focused on whether Bermuda’s regime delivers a comparable level of policyholder protection, with ongoing monitoring built into each framework.
That monitoring, Swan suggested, is intense. “The BMA is one of the most monitored regulators on the planet,” he said. “And we’re happy because we’re monitored by bodies that embrace the highest standards. And what really pleases us is, as they say, self-praise is no recommendation.”
His comparison between the European and US processes was revealing. While the NAIC process is more formal and involves annual reaffirmation, with jurisdictions formally reapproved in public session each year, Swan said the European model operates differently.
“The European process is closer to a marriage, a happy marriage,” he said, describing it as an ongoing relationship built on compatibility, trust and continuous dialogue rather than recurring formal renewal.
Hielkema appeared to embrace that characterisation. She said equivalence had made Bermuda a market she knows well, to the point where it feels like a day-to-day part of EU supervision despite being geographically distant. Because of the close working relationship, she said, Bermuda is “seen as an equal when it comes to EU supervision”.
She described the relationship as one that goes well beyond formal oversight. Ongoing dialogue means both sides are able to raise concerns, share market developments and discuss where they may feel uncomfortable with particular structures or trends. In her view, the quality of cooperation matters especially in an environment where finance increasingly involves complex and sometimes opaque structures spanning multiple jurisdictions.
That transparency, she suggested, is one of Bermuda’s strengths. Hielkema said the BMA had proved willing to explain what it is seeing in the market and to engage constructively when concerns arise, helping complete a picture that no single supervisor can build alone.
The discussion also turned to the growing pressure on regulators to simplify reporting and reduce unnecessary burden without weakening standards. Here too, Swan echoed Hielkema’s position that simplification should not mean deregulation. He said the BMA had identified areas where reporting and filing requirements had become duplicative as the regime evolved, and that addressing those inefficiencies would be a priority over the coming year.
He noted that excessive regulatory burden can ultimately work against the BMA’s own objectives. Swan argued that if compliance costs become unnecessarily high, firms may reduce capacity or raise prices, undermining efforts to narrow protection gaps and keep insurance affordable.
Hielkema made a similar case from the European perspective, noting that the recent Solvency II review had sought to improve proportionality, reduce unnecessary reporting and build a more pragmatic supervisory mindset. But she was also clear that there are choices to be made between speed, consultation, harmonisation and principles-based regulation, especially in a system spanning 30 supervisory authorities.
The Association of Bermuda Insurers and Reinsurers (ABIR) represents Bermuda’s major property and casualty insurers and reinsurers. The event was supported by ABIR member companies and event partners KBRA, Bermuda Business Development Agency (BDA), and Deloitte, along with education partner The Institutes Knowledge Group.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
